- Location
- S. Staffs
Has anyone got reasonably accurate cost for an oil fired CF drier at current cost of kero? What do the co=ops charge members per tonne, I am assuming that they charge close to cost to their own members ?
Continous flow dryer running costs v. co-op stores
- Thread starter chaffcutter
- Start date
Feldspar
Member
- Location
- Essex, Cambs and Suffolk
In the past, when I have been thinking about central versus own storage costs, I've used this pdf which has some guide prices:
http://www.randbrothers.co.uk/wp-content/uploads/2014/03/RANDStore-information-V3.pdf
http://www.randbrothers.co.uk/wp-content/uploads/2014/03/RANDStore-information-V3.pdf
I have the drying costs / T schedule in front of me on my desk now from a large well known merchant we work for - they charge pretty much double the costs above, I guess that's a commercial price with a generous margin in it though where as what you attach says subsidised drying price
I've never yet sat down and worked out the cost of our new dryer per T etc - not an easy thing to calculate though I guess
- Location
- Huntingdon
The drying charges are probably close to cost but the weight losses and screenings charges are often very much in the stores favour, not always but I have seen some shocking figures from some people.
C B
Colin
Member
- Location
- Perthshire
It's not just the drier though you forget that over the years conveyors wear out and need replaced, you have someone running the drier etc etc. And this comes from someone with one! If I could harvest everything dry enough to avoid drying charges and we didn't have storage space and there was a store on my doorstep that let me market it the way I wanted then it would make sense but here it doesn't stack up.
As for cost per tonne, I've no idea, it's there and works so we use it, if I was doing it again I would go for a large batch drier, it would clean up samples better and could be left to run itself without being babysat.
As for cost per tonne, I've no idea, it's there and works so we use it, if I was doing it again I would go for a large batch drier, it would clean up samples better and could be left to run itself without being babysat.
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
Does that price of £9/t include haulage?
That looks to be storage on an annual basis rather than a shared facility owned by the members?
Feldspar
Member
- Location
- Essex, Cambs and Suffolk
The 9 £/t doesn't include haulage. You're also quite right, it's not a co-op. I would be interested to know if co-op rates differ substantially.
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
A co-op is exactly that, shared risk & reward. The store's income is used in several ways; to run the store, to subsidise charges, to invest in infrastructure (which can then be shown as increased asset value in the farm accounts of each member) and finally to redistribute to the members.
For the 2015 harvest year, Woldgrain was able to reduce annual charges to members and redistribute over £120,000 to members.
so if you're a good grower you are subsidising the not so good ones then
seems fair !
- Location
- Huntingdon
Can't comment on your set up, but know another 'Co-op' took near 45mt of 'screenings' out of a lump of feed wheat delivered to them at harvest 2015 (we tested the same wheat at 78-80kghl and moved one lump of it to a premium home as had hagberg and protien), the farmer in question asked for the screenings to be delivered back to him for pheasant food or at least to be paid for it, they told him it was sold as distressed corn at circa £50/mt, he didn't get a premium on the now 'cleaned' feed wheat.
It is easy to tar everyone with the same brush, and appreciate not everyone does the above, but it does need to be considered as often when the drying/storage charges look cheap there may be a catch.
C B
that's shocking ! truly shocking - 2015 the premium would have been £50 at time
if I could only grow low protein low bushel wheat then joining a co-op full of decent milling wheat growers might just make some sense !
Grain Buyer
Member
- Location
- Omnipresent
so surely the question must be asked.........Farmer owned or Co-op Storage?
- Location
- Huntingdon
Sorry 2015 harvest as in this last harvest, so although I completely agree it is shocking the premiums were circa £3-5.
C B
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
That is a poor business model that requires deductions on that scale. Woldgrain does not deduct screenings losses from Group 3 wheat, Group 4 wheat or Feed Barley.
so if I send you a load of 60kg crap you mix it with some better farms 80plus kg stuff ? - the 80kgs guys are subsidising the blending costs though within their storage fee I suppose though
what happened in 2014 when it was all 60kgs crap and even gp 3 and 4 was getting a kick in the nuts at mills ?
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
Growers who are cooperatively minded find our systems very fair. Our membership as a whole benefits from the uplift we generate from never outloading sub 72kg/hl feed wheat (for example).
However, investing in Central Storage would not suit every grower's situation.
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
We will blend our intake to try to ensure that it all meets contract spec on outloading. The uplift generated by FW blending would then be shared between FW growers (at the discretion of the Board of Directors).
After the 2014 harvest we redistributed £98,000 back to members.
- Location
- S. Staffs
@Grain Buyer - it's off on the familiar track again, but nobody's answered my original question with some real on farm costs as yet...
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
But you still only get to sell the spec that you've delivered, just like any store.
Woldgrain Storage
Member
- Location
- Hemswell, North Lincs
Our drying charges are close to break even (i.e. subsidised), without including purchase/depreciation of driers and other infrastructure.